Municipal Accommodation Tax

The goals of the MAT include, but are not limited to:

• Increasing tourism visitation;
• Increasing total tourism spend;
• Increasing tourism asset development and tax assessment; and
• Undertaking environmental sustainability initiatives in support of the tourism industry and the broader community.

The Niagara Falls Canada Hotel Association (NFCHA) Inc. is a non-profit corporation created to promote the City of Niagara Falls, Ontario, as a tourism destination. Learn more on the Niagara Falls Canada Hotel Association's website.

Update: Changes to the Municipal Accommodation Tax (MAT) By-law effective June 1, 2025.

Changes to the MAT will be applied based on the star rating of the accommodation property (Hotels, Motels, Bed and Breakfasts, Vacation Rental Units, and Owner Occupied Short Term Rentals) in the following amounts per night:

• Five-star rating: $7
• Four-star rating: $6
• Three-star rating: $5
• Two-star rating: $4
• Unrated properties: $5

To find the star rating of your accommodation property, please email the Accounting Supervisor.

The tiered star rating MAT system

Since its introduction in Niagara Falls, the MAT (Municipal Accommodation Tax) was originally charged at a flat rate of $2 per occupied room. However, there was growing concern that this approach was not equitable, particularly when applied to hotels with varying star ratings and nightly rates. To address these concerns and to align with market trends—while also aiming to increase revenue—the tiered star rating system was introduced. This system maintains the consistency of a fixed rate rather than a percentage-based model, but now adjusts the amount charged based on the star rating of the property. Star ratings are sourced from a major global online travel agency, relying on self-reported data provided by the hoteliers themselves.

Tax rules

• If any guests exceed the 28-day stay (extended stay guests) and there is no formal landlord-tenant relationship, a MAT amount based on the property's star rating must be submitted. These rooms must be included on the Municipal Accommodation Tax Remittance Form in the "Number of Room Nights Sold".
• Consistent with the previous By-Law, the MAT will be identified on the invoice or receipt for the stay

Please email the Accounting Supervisor if you have any questions.

The City can charge the Municipal Accommodation Tax (MAT) under the Municipal Act, 2001 and Ontario’s Transient Accommodation Tax Regulation (O. Reg. 435/17).

By-law 2025-009 was approved by City Council on January 14, 2025. It allows the city to apply the tax to short-term stays in accommodations such as hotels and motels. The tax is mandatory and cannot be refused. Only those accommodation types listed in the exemptions section are not charged the tax.

The MAT by-law and amendments can be found in the By-law Directory.

The Municipal Accommodation Tax does not apply to the following types of accommodations:

1. Government agencies, boards, commissions, or organizations controlled by the Ontario government
2. School boards as defined by the Education Act
3. Colleges, universities, and post-secondary schools, when they provide housing for students actively enrolled and attending classes
4. Public and private hospitals listed under the Public Hospitals Act or the Private Hospitals Act
5. Retirement homes, hospices and long-term care homes as defined in the Long-Term Care Homes Act, 2007
6. Treatment centers funded by the province, every house for refuge or for reform of offenders, non-profit shelters for the relief of the poor or for an emergency
7. Campsites or trailer sites at campgrounds, tourist parks, or trailer parks
8. Employee housing provided by employers at their place of business
9. Hospitality rooms without beds used for meetings, merchandise displays, or entertaining

How to remit MAT

Registration and remittance

1. You must register your transient accommodation establishment by completing the Registration Form
2. Once your establishment is registered, you must complete a Remittance Form, indicating the number of rooms booked for the month, the rate applied for those rooms and remit payment to the City of Niagara Falls

When to remit the return on the collected tax

• Hotels, Motels, and Inns must submit a Municipal Accommodation Tax Remittance Form and payment at the end of each month for the tax collected in the previous month
• Bed and Breakfasts, Vacation Rental Units, and Owner Occupied Short Term Rentals must submit a Municipal Accommodation Tax Remittance Form and payment at the end of April, July, October and January, for tax collected in the previous calendar quarter

Payments

Payments can be made in the following ways:

1. Electronic Funds Transfer (EFT)
   • To get set up for EFT please complete the online form
   • For payments made by EFT, the remittance form may be submitted by email to ar@niagarafalls.ca or by mail
2. By mail: City of Niagara Falls, City Hall Finance Department, 4310 Queen Street, Niagara Falls, ON L2E 6X5
3. In person: At City Hall (4310 Queen Street), or the MacBain Community Centre (7150 Montrose Road)

Late payments

• Late payment fees will be charged at a rate of 1.25% on the first day of default and on each month thereafter in which the default continues
• Overdue MAT accounts will be transferred to tax receivables after 60 days. If no report or remittance is received, the City will estimate MAT for the accommodation provider.

Refunds

If a refund was issued to a guest after submitting the return, adjustments from prior reporting periods can be made in a future return.

When MAT was not collected in the reporting period

If no tax was collected, you are still required to submit the return, indicating that no tax was collected in that month.

It is important to maintain communication with the City. Your report is your attestation to tax collected and due. Please contact the City immediately if there is any reason not to report as scheduled. 

Yes, the MAT is mandatory and cannot be refused.

Guests must pay the tax to the accommodation operator when they pay for their stay.

Accommodation providers must send the tax they collect to the City of Niagara Falls.

Yes, HST is charged on top of the Municipal Accommodation Tax.

The MAT is deemed part of the consideration for the supply of the transient accommodation. The determination of which items are to be included in the base for HST is covered under Section 154 of the Excise Tax Act (R.S.C., 1985, c. E-15).

No. The tax applies only to rooms used for accommodation. It is exempt for rooms without beds that are used for displaying merchandise, holding meetings, or entertaining.

As part of the City's commitment to making this transition as smooth as possible, the following provisions have been developed to clarify how to handle various booking scenarios:

1. Any transient rooms booked and fully paid by guests before the MAT rate change on June 1, 2025, should be honoured with the original MAT rate
2. Any transient reservations booked and not fully paid would be transacted at the front desk as the new MAT rate
3. All groups with signed contracts with blocks of rooms signed before June 1, 2025, will pay the $2 rate. All others will pay the new rate.

The City has the authority to inspect and audit all books, documents, transactions and accounts of accommodation providers. Accommodation providers must keep books of account, records and all documents related to the sale of accommodations and the amount of the Municipal Accommodation Tax collected and remitted to the City.